The United States is about to witness the launch of its first-ever memecoin exchange-traded fund (ETF), marking a significant milestone in regulated crypto investment products following Bitcoin and Ether ETFs.
Bloomberg ETF analyst Eric Balchunas announced on social media that the Rex-Osprey Doge ETF (ticker: DOJE) will begin trading this Thursday. This fund notably holds an asset with no traditional utility or purpose, reflecting a unique development in ETFs.
Balchunas also disclosed that the fund’s approval is under the Investment Company Act of 1940, differing from the usual regulatory approach that governs physical commodities or derivatives.
Ahead of the ETF launch, Dogecoin (DOGE) saw over a 13% price increase in the past week, reflecting investor enthusiasm. Recognized as the pioneering memecoin, Dogecoin has a market capitalization of $36 billion and a large, dedicated community.
This ETF inclusion underscores growing institutional interest in memecoins, primarily for speculative purposes.
Upcoming Crypto ETFs Accelerate
Following the Rex-Osprey Doge ETF approval, the SEC is reviewing many other crypto-focused exchange-traded products covering assets like Solana (SOL) and XRP. Bloomberg analyst James Seyffart reported that 92 crypto ETF proposals are currently in the pipeline.
The initial crypto ETF wave focused on Bitcoin and Ether, with spot Bitcoin ETFs launching in early 2024 and attracting tens of billions in investment. Ether ETFs have also gained traction, seeing remarkable inflows this year.
This growth follows the SEC’s updated stance on digital assets, emphasizing tokenization as innovation and clarifying that some liquid staking activities do not fall under securities laws.
